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Assignment on

Applying Porter Diamond model on BeximcoTextile Ltd.

Course title: International Business

Course code: BUS-302

Submitted toGouranga Chandra Debnath

Senior Lecturer

Department of Business Administration

Daffodil International University

Submitted by

Group name: light of moon

Section: B

Name ID.

Roni Kumar Ghosh 112-11-2085

Md .Mashiur Rahman 112-11-2086

Badhon Sarker 112-11-2104

Md.Arshadul Haque 112-11-2110

Date of Submission: 04/07/13


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EXECUTIVE SUMMARY

The Garment industry of Bangladesh has emerged as a competent garment producer in globalgarment business in recent times. This industry has successfully transformed Bangladesh into an

export-oriented economy. The Garment industry also became the major foreign currency-earning

sector with highest rates of absorption of industrial employment. Bextex Lt d.wa s incorporatedin Bangladesh as a Public Limited Company with limited liability on 8 March 1994 and

commenced commercial operation in 1995. This company applying porter Diamond theory

to established their business. This analysis is the most important factor of porter diamond.These are Factor conditions, Demand conditions, Related and supporting industries,

Firm strategy, structure and rivalry, Government, Chance. When they are satisfied then

they are going to establish their business.


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INTRODUCTION

Porters Diamond Model can be used to access the Clothing industrys likely competitiveness in

global perspective. The industry is likely to be competitive when the factors mentioned in the

Porters Diamond Model are significant in locally than its competitors. The four key factors in

Michael Porters Diamond Model are: Factor Conditions, Demand Conditions, SupportingIndustries, and Rivalry, Strategy, Structures.


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Applying Porter Diamond in Beximco Textile Ltd:

Bextex Ltd. (the "Company") was incorporated in Bangladesh as a Public Limited

Company with limited liability on 8 March 1994 and commenced commercial operation in1995. This company applying porter Diamond theory to established their business. This

analysis is the most important factor of porter diamond. These are Factor conditions, Demandconditions, Related and supporting industries, Firm strategy, structure and rivalry,Government, Chance. When they are satisfied then they are going to establish their

business.

Factor conditions:There are two tapes of Factor conditions.

1.Basic factor endowments : Human resources, physical resources, climate, geographic

location ,demographics are focus on basic factor .The entrepreneurs of BexTex are saw that in

Bangladesh the main factor of a garment is labor is very low cost and the number of labor are

available. Another main object is land. They established their factory in Gazipur. In Gazipur,land also very available.

2 Advanced factor endowments: knowledge resources, capital resources and

infrastructure are advanced factor of endowments, The number of capi ta l als o avai lable.

Th ei r pa id up capi ta l is 1,882.50. In this case, Factor conditions are available. For this reason

the entrepreneur of Bextex are established their business in Bangladesh. Communication system

are very good in Gazipur so entrepreneur are invest in Bangladesh.

Demand conditions:Another main factor in Porter Diamond is Demand conditions. Because the main aim of

a Business is achieve profit. If the demand of a product is less than the profit is also low.

So the demand condition is also very much important. Entrepreneur of Bextex are

analyst the demand condition of Bangladeshi product. They found that they can export

high quality product with low cost because the labor is very low cost. And the demand is

also very high in Europe, America, Africa and the Muslim cou ntr y becaus e

Bangladesh is a Muslim country. So the established of Bextex is positive in

Bangladesh. Bextex is most profitable garments in Bangladesh. Bextex main product are

Dominate these markets in high quality : Men's, Women's , Children Shirts( Dress & Casual

),Blouses( formal & casual ) Skirts, JacketJeans & Casual non - denim bottoms, Knitted tops & bottoms.


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Related and supporting industries:

There are lots of bank and insurance company in B an gl ad es h. Th e en tr ep re ne ur ofBextex can ge t loan and safe ty f rom bank and insurance . A nd the o ther

rela ted and supp ort i ng ind ustr i es are also ava ilab le in Bangladesh. India export

a lot of Hanger, Jipper, Button, Yen etc. And Bangladesh can easily import from India andthe transport cost is also very low. So the establishment of Bextex in Bangladesh is positive.

Firm strategy, structure and rivalry:

Vision of bextex

Gain market leadership in high value added apparel in USA & Europe . Use Innovation &

Speed as prime drivers, rather than cotton & cheap labor.

Missionof bextex

To provide design and product development support from fiber to garments to leading retailers

and brands using integrated manufacturing resources, powerful CAD tools, technologycollaboration with major suppliers (like CIBA, DuPont etc.) and interface with fashion forward

customers, rapidly develop and bring trendy, innovative differentiated products to our strategic

partners every season. Our Design Studio works to produce entire collections with Inditexincluding womens and mens clothing, woven and knit tops, casual and denim bottoms and

jackets. We have now introduced a catalogue which will highlight our concept of complete new

looks, products and fabric swatches and we will be sending one of these to all our key customers

almost every eight weeks.

Management of bextex

The company is operating through a well defined management structure headed by a chief

Executive Officer under whom there are various departmental heads and according to hierarchy,

various senior and mid level management staffs. The chief executives officer and departmentalheads meet at regular interval. Its very helpful to production

BEXTEX Limited by nature operates in the weaving and finishing segment of the complexstructure of the Textile & Clothing industry of Bangladesh. The local textiles producers did

never exert threats to the company. Rather it is the textile giants in Chaina, India, Indonesia,

Pakistan are the major competitors of BTL as the companys perception, because most of themoperate in the same markets as like as BEXTEX Limited.


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Competitor of BexTex

In the local industry BexTex Ltd. is currently grabbing a big volume in terms of the share in theexport-oriented RMG market. Mani competitor are Monno tex , unocom tax,sinhatax,HHtax

,padmatax are main competitor.

Conclusion:

Poters Diamond Model suggests thatcompetitiveness in the garments sector could erode if

international supports are withdrawn while integrating and coordinating textile clothing pipeline

and supply chain could develop competitive advantages.

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